Little-Known NYS Employment Rule Affects Hospitality Industry
If you're in the hospitality industry in New York, be aware of the "spread of hours" rule, which requires you give employees a one-hour "bonus" in certain circumstances.
"Spread of hours" is an industry term for the length of the interval between the beginning and end of an employee's workday. The spread of hours for any day includes working time plus time off for meals plus intervals off duty.
Examples of a spread of hours greater than 10 are:
7-10 a.m. plus 7-10 p.m. = 6 hours worked but a 15-hour spread.
11:30 a.m.-3 p.m. plus 4-10 p.m. = 9.5 hours worked but a 10.5-hour spread.
Such a situation is legal, but you have to give each employee something extra:
On each day on which the spread of hours exceeds 10, an employee shall receive one additional hour of pay at the basic minimum hourly rate.
The additional hour of pay shall not be offset by any credits for meals or lodging provided to the employee.
The additional hour of pay is not a payment for time worked or work performed and need not be included in the regular rate for the purpose of calculating overtime pay.
This section shall apply to all employees in restaurants and all-year hotels, regardless of a given employee’s regular rate of pay.
Employers should work closely with their payroll providers to make sure they're keeping track of the spread of hours and compensating their employees accordingly.
Contact us if you have any questions.